Louisiana Public Retirement System, Amendment 2 (October 2011)

Amendment 2
Type	Constitutional amendment
Origin	Louisiana State Legislature
Topic	State budgets
Status	Approved a

The Louisiana Public Retirement System, Amendment 2 was on the October 22, 2011 statewide ballot in Louisiana as a legislatively referred constitutional amendment where it was approved a.

The proposed measure allowed for a minimum of 10% of nonrecurring revenue to be applied toward the state retirement systems.

Election results

Amendment 2 (October 2011)
Result		Votes	Percentage
a Yes		531551	58.70%
No		373945	41.30%

Source: Louisiana Secretary of State, official results 10/22/11

Text of measure

The ballot question read:

To require in Fiscal Years 2013-2014 and 2014-2015 that five percent of money designated in the official forecast as nonrecurring be applied toward the balance of the unfunded accrued liability which existed as of June 30, 1988, for the Louisiana State Employees' Retirement System and the Teachers Retirement System of Louisiana. To further require that in Fiscal Year 2015-2016 and every fiscal year thereafter that ten percent of such nonrecurring revenue be applied to such purposes.

Constitutional changes

Amendment 2 amended Article VII, Section 10(D)(2)(b).

Note: Hover over the text and scroll to see the full text.

§10. Expenditure of State Funds

Section 10.

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(D) Appropriations.

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(2) Except as otherwise provided in this constitution, the appropriation or allocation of any money designated in the official forecast as nonrecurring shall be made only for the following purposes:

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(b)(i) Providing for payments against the unfunded accrued liability of the public retirement systems which are in addition to any payments required for the annual amortization of the unfunded accrued liability of the public retirement systems, as required by Article X, Section 29(E)(2)(c) of this constitution; however, any such payments to the public retirement systems shall not be used, directly or indirectly, to fund cost-of-living increases for such systems.

(ii) For Fiscal Years 2013-2014 and 2014-2015 the legislature shall appropriate no less than five percent of any money designated in the official forecast as nonrecurring to the Louisiana State Employees' Retirement System and the Teachers' Retirement System of Louisiana for application to the balance of the unfunded accrued liability of such systems existing as of June 30, 1988, in proportion to the balance of such unfunded accrued liability of each such system. Any such payments to the public retirement systems shall not be used, directly or indirectly, to fund cost-of-living increases for such systems.

(ii) For Fiscal Years 2013-2014 and 2014-2015 the legislature shall appropriate no less than five percent of any money designated in the official forecast as nonrecurring to the Louisiana State Employees' Retirement System and the Teachers' Retirement System of Louisiana for application to the balance of the unfunded accrued liability of such systems existing as of June 30, 1988, in proportion to the balance of such unfunded accrued liability of each such system. Any such payments to the public retirement systems shall not be used, directly or indirectly, to fund cost-of-living increases for such systems.

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Support

Supporters argued that using nonrecurring funds to reduce the systems' unfunded accrued liability would help lessen the long-term cost of keeping the system solvent.

In a statement the Council for A Better Louisiana announced their support for the proposed amendment. "While CABL does not generally support the proliferation of amendments to the constitution, we recognize that some are needed to change policies that are already established in the constitution. We believe all of the changes proposed for the October ballot are reasonable and make sense from a policy perspective," said Barry Erwin, president of the council, in a statement.

Louisiana State Retirement Systems Director Cindy Rougeou said, "Constitutional Amendment No. 2 is a reform that will make a difference. The largest portion of the state contribution for retirement is for debt, not for benefits. The problem is the debt, not the benefit being earned."

Note: As of September 2011 there was no organized support or campaign effort.

Donors

According to the state campaign finance database, there were no registered committees (PACs).

(last updated December 2011)

Opposition

Opponents argued that the proposed constitutional amendment to require a certain amount to be applied to the state retirement systems would only tie the hands of legislators to redirecting the funds in the future. Additionally, they noted that the constitution already permitted the use of nonrecurring funds to be directed to the system and that there was no need to specify a certain amount.

Note: As of September 2011 there was no organized opposition or campaign effort.

Donors

According to the state campaign finance database, there were no registered committees (PACs).

State budgets on the ballot in 2011

(last updated December 2011)

Media editorial positions

See also: Endorsements of Louisiana ballot measures, 2011

Support

• The Daily Iberian said, "We already have gripes about the lack of leeway on spending in the Legislature because of constitutionally protected funds, so this limits it more. But 5 and 10 percent of extra funds aren't a lot so I'm going to vote for No. 2."
• Houma Today said, "It is a fiscally responsible way to approach what could soon be a crisis for the state and its many retirees."

Opposition

• The News-Star said, "The Legislature does not need a constitutional directive to do this. This would further tie the hands of the Legislature in the future as it grapples with difficult budget years."
• The Times-Picayune said, "The Constitution already allows the use of nonrecurring revenue for this purpose, so the amendment would put unnecessary restrictions on spending. Some opponents point out that the percentages of revenue outlined are rather small. The consequence could be that lawmakers become satisfied with those small automatic payments rather than dealing with the unfunded liability in a meaningful way."

Path to the ballot

See also: Louisiana legislatively referred constitutional amendments

If 2/3rds of the members of both houses of the Louisiana State Legislature voted in the affirmative, a legislatively referred constitutional amendment could be placed on the statewide ballot.

On June 22, 2011 both the House and Senate approved the proposed measure for the ballot. The House voted 86-3, while the Senate voted 34-2. The measure was referred to the Louisiana Secretary of State for the statewide ballot on June 24, 2011.

Timeline

The following is a timeline of events surrounding the measure:

Event	Date	Developments
Senate vote	June 22, 2011	Senate (34-2) voted in favor of referring the measure.
House vote	June 22, 2011	House (86-3) voted in favor of referring the measure.
Certified	June 24, 2011	Referred and certified for the 2011 ballot

See also

• 2011 ballot measures
• Louisiana 2011 ballot measures

Articles

• Election preview: Louisiana ballot measures focus on state budget funds
• Election results: Louisiana ballot measures
• Election aftermath: 3 Louisiana measures approved, 2 defeated in primaries (updated)

External links

• HB 384 summary and full text
• League of Women Voters of Louisiana - Voter Guide 2011 Louisiana constitutional amendments
• Public Affairs Research Council of Louisiana - Guide to the 2011 Constitutional Amendments

Additional reading

• St. Tammany News, "Amendments will benefit students, veterans," October 12, 2011
• The Times-Picayune, "Louisiana voters will weigh in 5 changes proposed for state Constitution," October 8, 2011
• DailyComet.com, "La. voters to consider six amendments," September 11, 2011
• The Times-Picayune, "Louisiana Constitution amendments on fall ballots include cigarette tax question," July 14, 2011